Hong Kong stocks widened their declines in early trading, with the Hang Seng Tech Index falling more than 1% and the Hang Seng Index dropping 0.56%.

Among the tech index constituents, Alibaba and Baidu Group fell more than 2%, while Tencent Holdings and Xiaomi Group declined over 1%.

Some fund managers said Hong Kong stocks remain an underweight asset. Some international capital that could have flowed into Hong Kong equities has been diverted by the South Korean semiconductor rally, while A-share funds currently prefer to capture the investment benefits of the domestic high-end technology manufacturing sector. The inflection point for allocation still requires observation and tracking, though the valuation trough in Hong Kong stocks is already in sight.